Allan government pledges to make working from home a legal right

Private and public sector workers would have the right to work from home at least two days a week under legislation proposed by the Allan government.

The laws aim to protect workers who can “reasonably” do their job from home and will include exemptions where working remotely is not practicable. The laws will be subject to further consultation to determine how the exemptions will apply.

The state’s power to enforce these protections is likely to be tested in court, similar to other work from home legal challenges before the Fair Work Commission.

Premier Jacinta Allan will announce the policy, the first of its kind by a state government in Australia, on Saturday as she addresses the party faithful at Victorian Labor’s state conference.

The government expects to pass the laws next year, setting the stage for the 2026 state poll as the first major policy announcement to be debated in an election year.

Under the proposal, details of which have been provided to The Age before the announcement, anyone who can reasonably do their job from home would have the right to do so for at least two days a week, whether they work in the public or private sector.

That right would not extend to roles that cannot support remote work, such as frontline positions in healthcare or emergency services.

“Work from home works for families, and it’s good for the economy,” Allan said in a statement.

“Not everyone can work from home, but everyone can benefit.

“If you can do your job from home, we’ll make it your right – because we’re on your side.”

The Allan government estimates working from home saves Australian employees $110 a week. It will also argue that remote working cuts congestion, encourages more hours of work and supports greater opportunities for women with children, carers and people with a disability.

Consultation on the laws will be led by the Department of Premier and Cabinet. It will consider the type and size of businesses covered by the scheme, who can reasonably do their job from home, and must also arrive at an acceptable definition of what constitutes remote working.

The consultation will not debate whether working from home should be a right, only the best way to frame laws that reflect this principle.

Workforce participation is 4.4 per cent higher than before the pandemic. On Saturday, Allan will say that working from home has changed millions of lives and benefits even those who cannot take advantage of it.

But she will argue the practice must be legally protected because workers are still being denied reasonable requests to work from home and there are still political pushes for mandates to return to the office.

Work from home has become increasingly prevalent since the COVID pandemic. Australian Bureau of Statistics records show that about a third of the nation’s employees remain at home for at least part of their working week.

However, it remains a contentious topic as some employers have sought to encourage their staff back into the office full-time or for minimum periods each week.

In September, Amazon said its Australian staff would have to work in the office five days a week, while software giant Atlassian has doubled down on its support for hybrid working.

Remote working became a key political issue during this year’s federal election campaign when the Coalition backtracked on a plan to force Commonwealth public servants back into the office five days a week midway through the campaign.

Then-opposition leader Peter Dutton admitted the policy, alongside plans to cut public service jobs, was a mistake after it became a key attack message for Labor and was believed to be hurting them in the polls.

Coalition MPs reported a backlash from voters who incorrectly thought Dutton intended to force every worker back into the office and spend more time stuck in traffic or on public transport.

Allan said Labor’s working from home policy would seek to capitalise on the lessons of this saga, with the ALP’s electoral dominance in Victoria strengthened this year when the party won three additional seats in a state already considered at a high watermark for its support.

In February, Victorian Opposition Leader Brad Battin stopped short of following the federal Coalition’s policy, but said the state needed to find ways to revitalise the CBD.

“How do we get people back into the city? It’s not necessarily just saying a mandate is going to work,” he said in February.

Any law protecting work from home is likely to be challenged in court by employers who already tell their workers to come into the office full-time.

The full bench of the Fair Work Commission is considering a major case related to working from home. Business NSW has petitioned for changes to awards affecting 1.8 million administrative and IT workers that would allow them to give up penalty rates and other entitlements when working remotely.

A recent Productivity Commission assessment reported hybrid working was not to blame for Australia’s sluggish growth, citing that most studies found the practice to be either neutral or positive for productivity.

Blair Comley, the secretary of the federal Department of Health and Aged Care, told a summit hosted by The Australian Financial Review on Tuesday that while there was no returning to five days a week, he was concerned about a 22 per cent attendance rate among his 7000 employees.

He did not suggest a looming policy change, but said that “we probably need to move the balance a bit” over concerns about productivity and longer-term impacts on culture and professional development.

Victorian Labor will debate a raft of policy proposals on Saturday and Sunday as part of its annual state conference in Moonee Valley.

Resolutions passed at the event do not become government policy but will be considered as Labor develops its party platform before the 2026 state election.

Issues range from a push to scrap the government’s wages policy to whether Melbourne’s train network should be put back in public hands.

Figures within the parties Left and Right factions have also been negotiating about an anti-AUKUS motion expected on Saturday afternoon, including whether to water down language sharply criticising US President Donald Trump and demanding the federal government withdraw from the submarine agreement.

Start the day with a summary of the day’s most important and interesting stories, analysis and insights. Sign up for our Morning Edition newsletter.